Shopping at the right time can help an individual make good savings in the long run. However, at certain times, people do not have a lump sum amount for this or are not ready to pay huge interest fees on credit card bills. During such a situation, BNPL would be quite handy for customers. BNPL is a payment service through which customers can buy any product or avail of a small loan and pay it back in a series of installments without any interest fee.
Buy Now Pay Later is quite easy to use, and the approvals for the same are completed much quicker as compared to traditional loans or credit cards.
Zero Interest fee
One of the most attractive features of Buy Now Pay Later is the zero interest fee on the borrowed amount. Customers can make good savings if they shop at the right moment and then pay the installment at the right time. The interest fee is only applicable if a customer misses their installment and this interest fee is predecided between the vendor and the customer at the time of availing the loan.
Better offers
Many of businesses are seeing that their customer acquisition cost is getting lower with them introducing BNPL as a payment option. Businesses have also stated that there has been an increase of 20% to 30% in order value per customer who use Buy Now Pay Later service. Due to this, many small and large-scale businesses are now offering more offers for customers who use this as a payment option. This, in turn, is also helping customers as they can afford many of the things quite easily and cheaply.
Pay in Instalments
Many a times, we are short of cash, and using a credit card is no good as there is a huge interest rate that needs to be paid off with each installment. However, with Buy Now Pay Later service, customers can pay by installments without any interest rate. The number of installments is predecided by the customer and the vendor before starting off the service. The number of installments for the same amount can vary from vendor to vendor. If a customer misses the installment date, they are charged an interest fee pre-decided between the vendor and the customer at the time of signing up.
Limit your spending
Since the customers are given good purchasing power, many people tend to overspend or overbuy many products. This could have a huge backlash on them while they are trying to pay back the installments for Buy Now Pay Later services. One of the best ways to put a limit on your spending is to have a proper plan before going out shopping and only buy those things that are necessary at the moment. Many parents also have an option to limit their kids BNPL apps, so they don't overspend at any given time.
Ease of access and faster transactions
In today's time, most people have smartphones equipped with the internet. Buy Now Pay Later service can be easily accessed through smartphones. This makes it easier as the transactions can be completed with just one tap and customers need to go around with cash or credit cards. The transaction speed is quite good, and it takes less than 3 seconds for a transaction to finish, saving time for both customer and business.
No issues with credit bureaus
All credit card companies share your data with credit bureaus, affecting your credit score. However, Buy Now Pay Later service does not do that. So even if you take a loan, this won't affect your credit score. Some of the BNPL vendors do share the data. However, prior intimation is given to the customer before sharing their data, and the customer can also opt-out of this service.
Having Buy Now Pay Later service will surely help you save a lot in the long run, and BNPL service will quickly overtake the credit card industry. Buy Now Pay Later service as it is easier for them to acquire and does not require credit history. Therefore, having Buy Now Pay Later service can help you at tough times and also help you to save money by doing the right buying at the right time.